★ WIDE MOAT STOCKS & COMPETITIVE ADVANTAGES ★
VOL. XCIV, NO. 247
Stock Profile
RTX Corporation (RTX) Moat Analysis
RTX Corporation
RTX · New York Stock Exchange
Weighted average of segment moat scores, combining moat strength, durability, confidence, market structure, pricing power, and market share.
Request update
Spot something outdated? Send a quick note and source so we can refresh this profile.
Overview
RTX is organized around Collins Aerospace, Pratt & Whitney, and Raytheon. Q2 2026 shares of segment sales before eliminations were 32.4%, 35.0%, and 32.6%; shares of reported segment operating profit were 42.3%, 23.9%, and 33.8%. Its strongest barriers are aircraft-platform design wins, long-lived installed bases and recurring aftermarket demand, engine engineering and manufacturing scale, and past performance on complex defense programs. All three segments expanded reported margin in Q2. Pratt commercial aftermarket grew 25%, while company backlog reached $289 billion, including $119 billion of defense work. In August, Raytheon received a $745 million missile-defense contract and Collins received a Chinook support contract worth up to $472 million. Aftermarket competition, airframer and airline bargaining power, GTF powder-metal remediation, fixed-price execution, and government funding are the main constraints.
Primary segment
Pratt & Whitney
Market structure
Oligopoly
Market share
—
HHI: —
Coverage
3 segments · 7 tags
Updated 2026-08-23
Segments
Collins Aerospace
Aerospace systems & aftermarket services (avionics, actuation, landing gear, interiors)
Revenue
32.4%
Structure
Oligopoly
Pricing
moderate
Share
—
Peers
Pratt & Whitney
Aircraft engines & aftermarket services (commercial and military)
Revenue
35%
Structure
Oligopoly
Pricing
moderate
Share
—
Peers
Raytheon
Defense systems (missiles, air & missile defense, sensors, command & control)
Revenue
32.6%
Structure
Oligopoly
Pricing
weak
Share
—
Peers
Moat Claims
Collins Aerospace
Aerospace systems & aftermarket services (avionics, actuation, landing gear, interiors)
Q2 2026 revenue_share uses Collins sales of $8.210B divided by $25.368B total segment sales before eliminations. Operating_profit_share uses $1.306B of reported segment operating profit divided by $3.086B. Sales grew 8% (13% organically), commercial aftermarket grew 10%, and reported margin rose 50 basis points to 15.9% (https://www.sec.gov/Archives/edgar/data/101829/000010182926000025/a2026-07x238xkerexhibit99.htm).
Design In Qualification
Demand
Design In Qualification
Strength
Durability
Confidence
Evidence
System selection and certification at the aircraft platform level create long-lived programs and switching costs; shipset position drives future spares/services pull-through.
Design In Qualification moat: definition, examples, and stocks
Erosion risks
- Airframer pricing pressure and supplier consolidation
- Aftermarket competition (PMA/DER parts, independent MRO)
- Technology shifts changing system content
Leading indicators
- Shipset wins on new aircraft platforms
- Commercial aftermarket organic growth vs global fleet utilization
- Mix of OEM vs aftermarket revenue
Counterarguments
- Airframers can dual-source or re-source systems on new platforms
- Where allowed, customers can source parts/services from non-OEM suppliers
Installed Base Consumables
Demand
Installed Base Consumables
Strength
Durability
Confidence
Evidence
A large installed base across global fleets supports recurring spares, repairs, and upgrades; capture rate can be pressured by alternative parts and service sourcing.
Installed Base Consumables moat: definition, examples, and stocks
Erosion risks
- Alternate parts approval and adoption
- Airline maintenance insourcing or independent MRO gaining share
- Digital condition monitoring reducing parts intensity
Leading indicators
- Aftermarket margin trend
- Spare parts pricing vs airline cost inflation
- Alternative-part approval and adoption rates
Counterarguments
- Aftermarket is contested and often bid; competitors can discount aggressively
- OEM does not always control the maintenance channel
Pratt & Whitney
Aircraft engines & aftermarket services (commercial and military)
Q2 2026 revenue_share uses Pratt & Whitney sales of $8.889B divided by $25.368B total segment sales before eliminations. Operating_profit_share uses $738M of reported segment operating profit divided by $3.086B. Sales grew 16%, commercial aftermarket grew 25%, and reported margin rose 190 basis points to 8.3%; the prior-year period included a roughly $100M customer-bankruptcy charge (https://www.sec.gov/Archives/edgar/data/101829/000010182926000025/a2026-07x238xkerexhibit99.htm).
Design In Qualification
Demand
Design In Qualification
Strength
Durability
Confidence
Evidence
Engine selection on aircraft platforms creates decades-long production + aftermarket; fleet commonality and certification drive high switching costs.
Design In Qualification moat: definition, examples, and stocks
Erosion risks
- Airframer pressure on pricing and risk-sharing terms
- Engine reliability/durability issues impacting reputation and cost
- Next-generation propulsion architectures reducing advantage
Leading indicators
- Share of deliveries/installed base on key aircraft platforms
- Warranty and concession trends
- Pratt & Whitney backlog trend
Counterarguments
- Airframers can steer future programs toward alternative engines
- Rivals have comparable certification and program win capabilities
Service Field Network
Supply
Service Field Network
Strength
Durability
Confidence
Evidence
Global aftermarket and sustainment capabilities create recurring revenue from shop visits, spares, and services across the installed base.
Service Field Network moat: definition, examples, and stocks
Erosion risks
- Independent MRO and parts alternatives gaining capability
- Airlines consolidate and negotiate pricing aggressively
- Regulatory shifts enabling more third-party parts/repairs
Leading indicators
- Aftermarket sales growth vs fleet utilization
- Engine shop capacity and turnaround time
- Aftermarket margin and mix trends
Counterarguments
- Aftermarket is competitive; customers can multi-source MRO work
- OEMs may discount services to protect installed-base share
Capex Knowhow Scale
Supply
Capex Knowhow Scale
Strength
Durability
Confidence
Evidence
Jet engine development and manufacturing require large ongoing R&D investment and deep process know-how, limiting viable global competitors.
Capex Knowhow Scale moat: definition, examples, and stocks
Erosion risks
- Government/airframer funding shifts across propulsion programs
- Engineering talent constraints
- Process innovations reducing required capex
Leading indicators
- R&D spend trend and program milestones
- Production ramp quality/yield metrics
- Competitive win/loss rate on new engine campaigns
Counterarguments
- GE and Rolls-Royce have comparable R&D and manufacturing scale
- Risk-sharing partnerships can lower entry barriers for new programs
Raytheon
Defense systems (missiles, air & missile defense, sensors, command & control)
Q2 2026 revenue_share uses Raytheon sales of $8.269B divided by $25.368B total segment sales before eliminations. Operating_profit_share uses $1.042B of reported segment operating profit divided by $3.086B. Sales grew 18%, and reported margin rose 110 basis points to 12.6%, driven by higher volume across programs including Patriot, Standard Missile, and AMRAAM (https://www.sec.gov/Archives/edgar/data/101829/000010182926000025/a2026-07x238xkerexhibit99.htm).
Government Contracting Relationships
Legal
Government Contracting Relationships
Strength
Durability
Confidence
Evidence
Scale, past performance, and compliance capabilities matter in winning and executing DoD and allied programs; relationships are sticky but not exclusive.
Government Contracting Relationships moat: definition, examples, and stocks
Erosion risks
- Budget cuts, continuing resolutions, or program cancellations
- Heightened bid scrutiny and price pressure
- Compliance failures leading to suspension/debarment
Leading indicators
- Defense bookings and funded backlog
- EAC adjustment frequency on fixed-price development programs
- Audit findings and regulatory actions
Counterarguments
- Defense procurement is competitive and frequently re-competed
- Government can demand more IP/data rights and create second sources
Long Term Contracts
Demand
Long Term Contracts
Strength
Durability
Confidence
Evidence
Large backlog provides multi-year revenue visibility; defense contracts still depend on appropriations and can be terminated for convenience.
Long Term Contracts moat: definition, examples, and stocks
Erosion risks
- Program delays and stop-work orders
- Cost overruns on fixed-price development contracts
- Shift toward faster-cycle procurement and commercial entrants
Leading indicators
- Backlog conversion rate
- Fixed-price vs cost-type mix
- Defense budget outcomes and CR duration
Counterarguments
- Backlog is not guaranteed; funding profiles and options can change
- Programs can be rebid or restructured to increase competition
Evidence
Customer selections of aircraft engines, components, and systems can also have a significant impact on future sales of parts and services.
Used to support aircraft-platform design-in leading to multi-year aftermarket revenue.
exclusivity assets... payments made to secure certain contractual rights
RTX reported $3.7B of exclusivity assets and $5.5B of remaining commitments tied to commercial aerospace platforms.
customers... may purchase parts from suppliers other than the original equipment manufacturer
Supports recurring aftermarket economics plus explicit substitution/price pressure risk.
10 percent increase in commercial aftermarket
Current evidence of parts, repair, modification, and upgrade growth across the installed base.
The GTF family now powers more than 2,600 aircraft for over 90 operators
Demonstrates the installed GTF base across three certified aircraft platforms at year-end 2025.
Showing 5 of 12 sources.
Risks & Indicators
Erosion risks
- Airframer pricing pressure and supplier consolidation
- Aftermarket competition (PMA/DER parts, independent MRO)
- Technology shifts changing system content
- Alternate parts approval and adoption
- Airline maintenance insourcing or independent MRO gaining share
- Digital condition monitoring reducing parts intensity
Leading indicators
- Shipset wins on new aircraft platforms
- Commercial aftermarket organic growth vs global fleet utilization
- Mix of OEM vs aftermarket revenue
- Aftermarket margin trend
- Spare parts pricing vs airline cost inflation
- Alternative-part approval and adoption rates
Research RTX elsewhere
Keep the research going
More Rankings & Systems
Quality Stocks
High quality stocks ranked by profitability, margins, free cash flow quality, durability, solvency, and accounting...
Stock rankingUndervalued Stocks
Undervalued stocks from the NA & Europe universe, ranked with a multi-measure value system and quality controls.
Stock rankingDividend Stocks
Dividend stocks ranked by payout yield, payout sustainability, dividend growth, quality, balance-sheet safety, risk...
Stock rankingDefensive Stocks
Defensive stocks ranked by low volatility, low beta, intermediate momentum, durable profitability, balance sheet...
Stock rankingMomentum Stocks
Momentum stocks ranked by total return momentum, relative momentum, trend confirmation, and risk-adjusted momentum...
Stock rankingConviction 10
A concentrated 10-stock strategy from the NA & Europe universe, ranked across quality, value, growth, momentum, and...
Curation & Accuracy
This directory blends AI‑assisted discovery with human curation. Entries are reviewed, edited, and organized with the goal of expanding coverage and sharpening quality over time. Your feedback helps steer improvements (because no single human can capture everything all at once).
Details change. Pricing, features, and availability may be incomplete or out of date. Treat listings as a starting point and verify on the provider’s site before making decisions. If you spot an error or a gap, send a quick note and I’ll adjust.